COVER STORY
outlook is to provide customers with protection wherever they can, but this needs to be underwritten smartly. “It could be that certain customers in highrisk areas may be faced with differing terms such as a higher excess.” Brokers also need to understand that compassion is important when dealing with people who have been affected by extreme weather events. This is especially important in the immediate aftermath of such an event. Christine Morrison owns a home in Edgecumbe that she rents out to a tenant. She says that the response of the claims team she dealt with immediately after the event left her unsettled. “They made me feel like the flood was somehow my fault,” she says. “The first two phone calls to my insurance company really alarmed me. They said that my policy didn’t cover many things that I thought it did, and I was worried that the entire process would be a nightmare.” Morrison called her insurer soon after the flooding happened. She says that her dealings
with the company later in the day (she assumes the staff had been properly briefed by this stage) were exemplary and the claims manager reassured her that she was fully covered. “I think that people who deal with the public after such events really need to be properly trained. Otherwise it can be an extremely stressful situation.” Narelle Hoarton is an Edgecumbe resident who also had a property affected by the flooding. She has advice for brokers and companies after extreme weather events. “There needs to be consistency. If they hire a third party to handle the claim they need to ensure that company is doing the right thing and representing the insurance company well.” She says that brokers and insurance company representatives need to ensure they communicate clearly. “They need to ensure the client is getting the correct information, and in a timely manner.” Atkinson reiterates that it’s extremely important for brokers to engage closely with their customers to understand the risks they face. “[It is particularly important for brokers to]
think about what future risks are emerging,” he says. “As we have managed claims arising out of the events over recent months we continue to encounter high levels of under-insurance both in personal lines and for business customers. We have to collectively address this for customers.” Sloan says it's worth noting that while insurance policies cover many extraneous risks, the main losses have always stemmed from the major perils of fire, earthquakes or flood/storm which cause massive losses both in New Zealand and worldwide. He says that insurance is incredibly important in the face of such perils. “Many European, Asian and South American countries have little insurance in place for the natural disasters they experience with the uninsured losses, often in the billions of dollars falling on communities and governments.” As managers of risk in an increasingly volatile world, it’s important that all of those involved in the insurance industry continue to be forwardthinking and innovative in order to address the challenges of climate change.
EDGECUMBE FLOODING © PHOTO COURTESY OF VERO INSURANCE www.covernote.co.nz
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